1981 (10) TMI 4

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..... s. 271(1)(a) of the I.T. Act, 1961. This question is now governed by a statutory provision retrospectively brought into force with effect from the commencement of the I.T. Act, 1961. After the retrospective amendment, the penalty leviable under s. 271(1)(a) is to be on a certain percentage of the assessed tax. An Explanation added by the retrospective amendment legislation defines " assessed tax .....

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..... d at source or taxes paid in advance. Hence, the Tribunal's view that the provisional tax should be deducted from the quantum of tax for calculating the penalty is not correct. However, the Tribunal, at the time when it rendered its decision, could not have anticipated the subsequent retrospective amendment in the statute effected by the T.L. (Amend.) Act, 1974. Having to dispose of a tax referenc .....

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..... s and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the tax paid in pursuance of the provisional assessment made under section 141 should be deducted from the tax determined as chargeable for the purpose of levy of penalty under section 271(1)(a) ? " Our answer to the two questions is in the negative and against the assessee. There will, however, be no .....

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